The current median home sale price of $668,500 is stable and rising steadily at 4.9% YoY. Moreover, homes spend only 20 days on the market. This indicates that the Massachusetts real estate market is pretty much competitive.
The average months of home supply are 2 months YoY. A market with fewer months of supply indicates a seller’s market. However, in July, the number of homes sold up by 9.2% year-over-year. In July 2024, 6,508 homes were sold, up from 5,957 homes in July 2023.
Such inactivity in the market is mainly due to the recent NAR settlement. People are anxious about the selling prices and agents’ compensation.
The NAR settlement has removed the buyers’ agent compensation and many MLSs have followed suit. It will probably reduce the home selling prices. As a result, buyers will enjoy better affordability and low mortgage rates. Here are some tips to help you stay competitive in the market:
- If You Are a Home Buyer: The number of homes for sale (17,549) is up by 19%. Combined with the expected drop in home prices, this could benefit you. The low mortgage interest rates at 5.84% are now in buyers’ favor. If housing demand and prices drop, you can also request seller concessions.
- If You Are a Home Seller: The correction in the home prices is long overdue. Following the NAR settlement, home prices may dip further. As a seller, you can still profit from your home sale before prices decline.
So, How Is the Real Estate Market in Massachusetts?
Balanced!
The number of homes for sale increased by 19% in July 2024 compared to the previous year. This is the 4th consecutive month the housing market has witnessed such growth. Other important facts are:
- Median Days on Market: The median days on the market for homes for sale are 20 days, up by 2 days YoY. This trend suggests a high demand in the Massachusetts real estate market.
- Housing Inventory and Supply: As a buyer, you have more options now as the housing inventory is up by 19%. There are 17,549 homes for sale in Massachusetts, with an average supply of 2 months.
- Average Home Prices: The median home price in Massachusetts is $668,500. But, it is expected to decrease due to a rise in inventory in the latter half of 2024. The sale-to-list price ratio is 102.4%, down by 0.65 pt YoY.
- Home Sales: As per July 2024 data, home sales increased by 9.2% YoY! Only 6,502 homes were sold, compared to 5,957 last year.
- Average Rent Prices: Rental costs vary statewide. The median rent is $3,099 with a month-over-month change is -$85.
Why Is Massachusetts a Seller’s Market Now?
Massachusetts’s real estate market has a balanced inventory of homes for sale. Besides this, a steady increase in median home prices favors home sellers. Homes spend only 20 days on the market which depicts the competitive market.
Let’s look at some more facts:
- Fewer Days on the Market: Homes are spending only 20 days on the market before going under contract. This is visible in metro cities like Gardner and Westborough where the average days on the market is between 19 to 20 days.
- Multiple Offers on Homes: Gardner got 85 in Redfin’s Compete Score. It means the housing market in Massachusetts is very competitive. Many homes get multiple offers, some are even sold without contingencies.
- High Sale-To-List Price: Homes often sell for 3% above the list price and go pending in 20 days. Hot homes sell for 8% above the list price and go pending in 9 days. The average sale-to-list price ratio in Gardner is 102.9%.
- Homes Sell Above List Price: On average, 58.7% of homes sell above list prices. This trend indicates a gradual shift toward a buyer’s market.
Your Path to Homeownership Starts Here🏡
Select Your Loan Type
-
New Home Purchase
-
Mortgage Refinance
-
Cash-out Refinance
Massachusetts Housing Market Predictions 2024
Here are the predictions for Massachusetts’s housing market in the remaining months of 2024 and 2025:
- Number of Home Buyers Will Increase: As inventory grows and homes stay on the market, more home shoppers are expected to re-enter the market. The historically high interest rates averted buyers in 2023. But the easing inflation and stabilizing rates will bring back house hunters.
- Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across MA YoY, reaching $668K in July 2024. Cities like Gardner and Westborough expect home prices to increase by 10.2% and 8.5% by July 31, 2024.
- iBuyers Will Continue to Make Lowball Offers: iBuyers like Opendoor and Offerpad, which once offered 104.1% of market value in 2021, now offer around 70%. Such lowball offers to sellers will increase opportunities for individual buyers.
- New Home Constructions Sales Will Increase: 12.3% of homes purchased in September were new homes, the highest since 2022. Home builders offered $30,000 worth of concessions to attract buyers in 2023. We think builders and sellers will compete for home shoppers in 2024.
When Will the Housing Market Crash in Massachusetts?
A housing market crash in the Bay State is unlikely.
Massachusetts boasts a vibrant economy with the cost of living slightly above the national average. Despite this, its robust economy, driven by technology, healthcare, and education sectors, continues to attract businesses and individuals.
The median home prices have steadily increased in cities like Haverhill and Andover. For example, Haverhill’s median sale price increased by 14% YoY, reaching approximately $557,000 in 2024. On the other hand, more affordable options can be found in cities like Springfield, with a median sale price of around $300,000.
Massachusetts offers a diverse job market, with unemployment rates around 3.5%. Major industries include biotechnology, finance, and tourism, providing ample opportunities for career growth.
Massachusetts is rich in history and culture, offering many activities for residents and visitors. The state provides various entertainment options, from exploring historical sites in Boston to enjoying outdoor adventures in Cape Cod.
2024: Is It a Buyer’s or Seller’s Market?
Massachusetts real estate market favors sellers in 2024. (And buyers, too!). The Massachusetts real estate market is expected to lean more in favor of the buyers in the latter half of 2024.
Home prices are rising slowly, and the number of homes for sale has increased by 19% YoY. Buyers now have more choices. With mortgage rates around 5.84%, buyers also have more purchasing power.
Consequently, more homeowners are likely to list their homes on Massachusetts MLS. The 8.6% increase in new active home listings in Massachusetts has brought back home shoppers. So, whether you are looking for a condo in Gardner or a single-family primary home in Westborough, you will find your dream home in the coming months.
Find Your New Home With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest home listing sites in the US. Find condos, townhouses, co-ops, and other homes for sale on Houzeo.
» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.
Frequently Asked Questions About Massachusetts Real Estate Market
When will the housing market crash in Massachusetts?
Not for the next few years. Massachusetts's housing market will not crash in 2024. Despite low housing demand and modest home prices, market is afloat.
What are the real estate housing market 2024 predictions for Massachusetts?
2024 is a balanced market with 2 months of supply and low inventory. Here's our forecast for Massachusetts's housing market in 2024: (1) Home buyers have returned to the market. (2) Housing inventory will increase. (3) Property prices in Massachusetts will increase. (4) Buyer agent commissions will be zero!
Are home prices dropping in Massachusetts?
Not yet! Currently the property prices in Massachusetts are increasing at a good rate of 4.9% YOY. However, you can still find the cheapest places to live in Massachusetts. You can find the value of your favorite homes on Houzeo's home value estimator.
Is it a good time to buy a house in Massachusetts?
Yes! Currently, there are very few buyers in the market compared to the supply of homes in Massachusetts. Homes for sales are up by 19%. The low mortgage payments have made buying a home affordable. More buyers will return in the second half of 2024, so we'd recommend you buy a house now.
